Mareel Ltd v Revenue and Customs (Default surcharge - whether surcharge notice served on Appellant) [2023] UKFTT 283 (TC) (11 January 2023)

Mareel Ltd v Revenue and Customs (Default surcharge - whether surcharge notice served on Appellant) [2023] UKFTT 283 (TC) (11 January 2023)

The Tribunal found that the default surcharge notice for period 09/20 was properly served as there was no evidence to displace the statutory presumption of service. Mareel Limited did not have a reasonable excuse for late payment of VAT for period 06/21, as the cause was foreseeable cash flow pressures rather than the direct impact of Covid-19, and no sufficient evidence was provided. The surcharge was not disproportionate in the circumstances and did not amount to a wholly exceptional case.

Citation
[2023] UKFTT 283 (TC)
Parties
Appellant: Mareel Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 January 2023
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
Default Surcharge, VAT, Reasonable Excuse, Proportionality, Service of Notice
Tax Law Default Surcharge VAT Reasonable Excuse Proportionality Service of Notice

Case Brief

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Parties

Mareel Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether default surcharge notice was served on the Appellant as required by law
  2. 2 Whether the Appellant had a reasonable excuse for non-payment of VAT
  3. 3 Whether the surcharge imposed was disproportionate

Ratio Decidendi

The Tribunal found that the default surcharge notice for period 09/20 was properly served as there was no evidence to displace the statutory presumption of service. Mareel Limited did not have a reasonable excuse for late payment of VAT for period 06/21, as the cause was foreseeable cash flow pressures rather than the direct impact of Covid-19, and no sufficient evidence was provided. The surcharge was not disproportionate in the circumstances and did not amount to a wholly exceptional case.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.